Residential launches in Delhi more than doubled in Q1
Nearly 8,000 units were launched during the quarter.
Residential launches in the Delhi-NCR region grew 111% qoq and 109% yoy, hitting a total of ~7,800 units launched. Of this supply, Cushman and Wakefield says that 94% was in Gurugram, with micro markets such as Golf Course Road Extension, NH8, and Dwarka Expressway witnessing the highest number of launches, followed by 4% launches in Noida.
The midsegment accounted for the majority of launches, with a 49% share, followed by the High-end/Luxury-segment with a 39% share, and the affordable segment with a 12% share.
Here’s more from Cushman and Wakefield:
The historic launch of a residential project with a price range of INR 17,500-18,500 in the Golf Course Road Extension area indicates that the real estate market in that location is highly buoyant. This could be due to a variety of factors such as the location, connectivity, and amenities offered in the area, as well as the general positive sentiment towards the real estate market in the region.
Also, the fact that prominent builders have lined up launches in the coming quarters further highlights the strength and potential of the market. A good number of launches was also recorded under the Haryana affordable housing scheme with 3,572 units launched in Sohna during the quarter.
Gurugram prime markets imposed with 30% rise in circle rates
The Haryana government has recently decided to increase circle rates for prime micro markets in Gurugram, including DLF Phase 1-5, Golf CourseRoad, Extension Road, and NH8. This new development in Gurugram, might impact the new transactions happening across the region, in the coming quarters. Marquee projects would remain unaffected largely, as their market rates are well above revised circle rates.
Capital values appreciating for select projects; Prime markets witness price rise
Owing to high demand for select category of projects, few developers raised their capital values this quarter. This is a trend that could continue in the near future. Many developers have been voicing concerns around rising input and labour costs, which are now getting passed-through to the buyer.Unless there is a change in consumer sentiment, this price rise is likely to continue for a few quarters.
During the first quarter of 2023, capital prices in both the mid and high-end segments of Delhi-NCR experienced some appreciation. Average city-wide capital values increased by 3-5% on a qoq basis, and average rental values saw increase of 2-3%. Conversely, Noida prices remained largely stable.